A contract is a legally binding agreement that may be written or oral, and is signed by both parties. Examples of contracts include sales agreements, real estate purchase contracts, employment contracts, confidentiality agreements, finder’s agreements, or insurance contracts, to name a few. Contracts are the foundation of the business and building a business with a lot of hard work without putting terms of business on record through contracts can land you in disputes later.
Drafting a contract is the act of writing out the terms and details of the contract in order to outline the legal obligations of the two parties so that they fully understand the terms of the agreement and their respective duties towards one another. Contracts may be drafted by anyone but an attorney is often needed in order to create a reliable and secure contract, especially for more complex contracts. The overall goal of drafting a contract is to ensure that each party thoroughly understands the terms and conditions in the contract. Therefore, the person drafting the contract should use clear and simple language, as much as possible.
We, at IP and Legal Filings (IPLF), through the support of Khurana & Khurana, have a dedicated drafting team with specialisation in International Sales, Commercial Agency, Confidentiality, Distributorship, Contracting, Subcontracting, Technology Transfer, Trademark Licensing and Turnkey Transaction. We aid in analysing your drafts, preparing standard templates, identifying the variables relevant to a contract, and building a checklist of “clauses”, which may be useful in addressing the distinctive specifications of each agreement. We help in providing our clients with end-to-end solutions and all necessary support in a timely fashion, in order to comply with the legal formalities to commence their operations/conclude their deals and at all times ensure that their business interests are safeguarded.
1. Understanding requirement
The first step in drafting a contract/agreement is understanding the modus-operandi and subject matter from the party involved.
After receiving a write up from the party, a detailed discussion takes place between the counsel and the party.
3. Writing & review
Our experts then write a comprehensive agreement based on the write up and the detailed discussion and share with the client/party for their review.
The Final Agreement/Contract is confirmed after necessary iterations.
1. What is a Contract?
A contract is a legally binding agreement that is enforceable in the court of law. Contracts may be written or oral, but many important contracts are often written and signed by both parties. Contracts are the foundation of the business world and may be simple or extremely complex.
2. What is an Agreement?
An agreement is a simple understanding or arrangement between two or more legally competent parties which are not legally binding.
3. Difference between Agreement and Contract?
An agreement is only one element of a contract. For an agreement to be a valid contract there must be few other elements present as well, like lawful objective and consideration.
4. What kinds of contracts are drafted by us?
There are various types of contracts drafted by our specialised drafting team such as Employment Contract, Memorandum of Understanding, Loan Agreement, Non-Disclosure Agreement (NDA), Non-Compete Agreement, Service Level Agreements (SLAs), End-User License Agreements (EULAs), Shareholding Agreements, Franchise Agreement, Leave and Licensing Agreement, Affidavits and Declarations and so on.
5. What elements does a contract draft contain in general?
Though each contract differs from others in terms of the contents, following things usually form the part of the agreement:
- Description of parties
- Description of consideration
- Duties and termination
- Dispute & Settlement
6. What are the minimum requirements to form a contract?
There are three basic elements to form a contract: an offer, acceptance of the offer, and consideration.
7. What is consideration in a contract?
Consideration refers to something of value that is given in exchange for the performance of the contract duties. Every contract agreement must be supported by consideration. In other words, you can’t make a contract for one person to give something to the other without receiving something in return. The consideration need not have to be of the same exact value as the goods or services being provided.
8. What is a breach of contract?
A breach of contract is when one party somehow doesn’t perform its obligations under the contract. A breach can occur in several ways: if a party doesn’t perform on time, performs in a way that is not in accordance with the terms of the contract, or simply doesn’t perform at all. The non-breaching party can sue the breaching party in order to receive relief.
9. When does a breach of contract occur?
A breach of contract generally occurs when a party fails to perform its obligations under the contract and such failure to perform is not excused by the non-breaching party. Examples of a breach of contract include a failure to pay for goods or services, providing defective merchandise, or failing to deliver goods or services under the time frame specified in the contract. A breach may also occur if a party violates a covenant or other term in the contract.
10. What kind of damages are available in case of breach of a contract?
Damages that may be recovered for a breach of contract vary depending on the terms of the contract and the nature of the breach. Parties are usually entitled to compensatory damages intended to place them in the same position as if no breach had occurred. Contracts may contain limitations on the type or amount of damages that may be recovered in the event of a breach or specify a particular amount of damages that will be awarded in the event of a breach.
11. Why is it preferred to get contracts in writing?
A written contract allows each party the chance to fully understand his or her obligations under the contract and ask any questions about the terms before signing.